(Bloomberg) — European shares opened just off record highs as traders waited to see whether U.S. jobs data, due later Friday, would bolster bets on an easing of Federal Reserve policy in coming months.
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Europe’s Stoxx 600 index fell 0.1% lower to hit record highs this week as the European Central Bank started its policy easing cycle. While technology stocks rose, real estate and insurance stocks fell, given the ECB’s signal that it would not rush to cut rates anytime soon. U.S. stock futures held steady, while Bloomberg’s dollar eased.
While traders were reluctant to place big bets on Friday, global stocks are on track to break a two-week losing streak. Expectations for rate cuts have escalated in the past week, encouraged by the series of weaker US data and rate cuts from the Bank of Canada and the ECB. A Bloomberg gauge for global government bonds showed the longest rise since November.
Homin Lee, senior macro strategist at Lombard Odier, said a recent set of softer U.S. data, including unemployment claims and labor costs, pointed to a “quiet rebalancing” in the economy that could signal a slowdown in services sector inflation.
“That combination seems to have given bond investors more conviction in their transactions. We’ll see if tonight’s employment report reinforces this,” Lee said.
Friday’s report is expected to show that the US added 180,000 jobs in May, slightly more than in April with the unemployment rate remaining stable.[rilwaarbijhetwerkloosheidscijferstabielblijftDeswapmarktenprijzeneenvolledigerenteverlagingdoordeFedinnovemberinmeteengrotekansopeenrenteverlaginginseptember[rilwiththeunemploymentrateseenholdingsteadySwapmarketsarepricingafullFedratecutbyNovemberwithastronglikelihoodofoneinSeptember
Earlier, Chinese exports rose more than expected in May, raising hopes that the world’s second-largest economy can maintain momentum by relying on foreign markets even in the face of new tariff threats.
On the commodity side, oil prices headed for their third straight rise as expectations eased that OPEC and its allies will oversupply the market.
Main events this week:
Some of the major moves in the markets:
Shares
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The Stoxx Europe 600 was little changed at 8.19am London time
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Futures on the S&P 500 were little changed
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Nasdaq 100 futures rose 0.1%
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Futures on the Dow Jones Industrial Average rose 0.2%
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The MSCI Asia Pacific Index rose 0.4%
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The MSCI Emerging Markets Index rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0896
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The Japanese yen rose 0.2% to 155.30 per dollar
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The offshore yuan rose 0.1% to 7.2505 per dollar
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The British pound was little changed at $1.2801
Cryptocurrencies
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Bitcoin rose 0.8% to $71,268.51
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Ether rose 0.6% to $3,822.13
Bonds
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The yield on ten-year government bonds rose by one basis point to 4.30%
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The German ten-year yield rose by two basis points to 2.57%
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The British ten-year yield remained little changed at 4.18%
Raw materials
This story was produced with the help of Bloomberg Automation.
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